Depilitory Success Story*

(143)*  Reversed market share decline. Increased factory sales of depilatory product to Wal-Mart from $12 million to $19 million in two years (33%).  Captured 27% of entire category at retail becoming category leader.  Competitor assortment reduced by 18%.  Change in assortment resulted in 5%+ margin increase for retailer. 

Increased factory sales to regional drug chains from $700,000 to $1 million per year.  Improved from marginal category leader to dominant category leader at Longs and Duane Reade. 

Became number one, dominant depilatory at Ulta. 

Became number one depilatory at Kroger, up 23%. 

Became number one depilatory at HEB and Fred Meyer.

Sold new distribution in to Publix and Safeway*.

Category:  Depilatory  (KB, GM, RG, RR, KK)

Problem:

·         Depilatory brand struggling at Wal-Mart

·         Depilatory brand struggling at regional drugstores

Solutions:

·         SKU by SKU analysis, comparing Associate’s manufacturer’s brand to all others carried by Wal-Mart

·         Got additional POS sales data from buyer

·         Made category advisory recommendation to buyer:

o   Fair to all brands and retailer - not just promoting Associate’s manufacturer

o   Example:  Discovered that the category leader had far too many SKUs due to many flavors. Scaled category leader’s flavors back, but made sure that consumer had a choice in every flavor.

·         Advertising spending:

o   Could not get category leader’s actual spending.   Indications were that category leader overpromised advertising spending by more than double.

o   Built competitive plans based on what category leader was actually spending - not the rhetoric.

·         Planogram/sample display:

o   Created 4 foot sample gondola set - “how category should look”

o   Took pictures

o   Set the sample display up in Wal-Mart’s planogram Center

o   Walked buyer through sample display

o   Created additional “side-by-side” display to further demonstrate best ideas for category

o   Sold the buyer on concept of a “family presentation” using trade funds from all manufacturers

*  Success stories, client quotes and payback estimates are provided as general illustrations of past performance and represent summaries of long term, complex efforts.  They are often used to teach concepts and lessons learned, and may have been simplified considerably.  Estimates of financial impact are estimates only, and not intended to convey exact financial information.  Some have been altered to protect confidential information.  We ask that prospective clients contact our references and request specific details of relevant success stories prior to any decision to use our services.